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Variable manufacturing overhead 910000 and direct labor

Problem - The following information is for the third quarter of this year:

Planned

Production 92,000 units

Direct labor hours 506,800 DL hrs

Fixed manufacturing overhead $205,000

Variable manufacturing overhead $910,000

Standard direct labor hour per unit 5.5

Actual

Production 87,000 units

Direct labor hours 380,000 DL hrs

Fixed manufacturing overhead $182,400

Variable manufacturing overhead $841,500

Calculate the following three overhead variances.

a. Overhead volume variance

b. Overhead efficiency variance

c. Overhead spending variance

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Accounting Basics: Variable manufacturing overhead 910000 and direct labor

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Accounting Basics: Variable manufacturing overhead 910000 and direct labor

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